Savvis prices $300 million five-year convertibles at 3%, up 42.5%

Boston, May 3 - Savvis Inc. priced $300 million of five-year convertible senior unsecured notes after the close Thursday to yield 3% with a 42.5% initial conversion premium.

The yield was at the cheap end of talk for 2.5% to 3% while the initial conversion premium was at the middle of talk of 40% to 45%.

The conversion price is $70.38 and the conversion ratio 14.2086.

The convertibles were offered at par.

There is an over-allotment option for a further $45 million.

Morgan Stanley and Goldman Sachs were the bookrunners of the registered offering.

The convertibles are non-callable.

There is a contingent conversion trigger at 120% of the conversion price.

The convertibles have dividend and takeover protection.

There is a net-share settlement option.

Savvis, a Town & Country, Mo.-based provider of information technology services, said it will use the proceeds to fund general purposes.

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